Blue Collar

What is a 'Blue Collar'

A blue collar is a working-class person historically defined by hourly rates of pay and manual labor. A blue collar worker refers to the fact that most manual laborers at the turn of the century wore blue shirts, which could hold a little dirt around the collar without standing out.

This working class stands in contrast to white collar workers, which historically have had the higher-paying, salaried positions to go with their clean and pressed white shirts.

BREAKING DOWN 'Blue Collar'

The term blue collar has in the past implied a certain lack of worker education as well, but those lines are blurred today. Today blue collar workers can be formally educated, skilled and highly paid. They can also earn more annually then some of their white collar counterparts.

The rate of college attendance in the U.S. has skyrocketed in the past 100 years, democratizing the education level once reserved for only wealthy families. Blue collar work does not typically carry a negative connotation in the United States, and has in fact been a source of multi-generational pride for millions, especially in the geographic northeast, where most of country's heavy industry first developed over 150 years ago.

RELATED TERMS
  1. White Collar

    A working class that is known for earning high average salaries ...
  2. Blue Collar Trader

    A trader who has another source of income, and does not trade ...
  3. Collar Agreement

    An arrangement in a merger and acquisition deal that protects ...
  4. Zero Cost Collar

    A type of positive-carry collar that secures a return through ...
  5. Interest Rate Collar

    An investment strategy that uses derivatives to hedge an investor's ...
  6. Fixed Dollar Value Collar

    A floor and cap on the stock component of an acquisition transaction, ...
Related Articles
  1. Wealth Management

    Blue Collar Vs. White Collar: Different Social Classes?

    Learn about the implications of the words "blue collar" and "white collar" and the connotation each carries for social class and the type of labor performed.
  2. Trading Strategies

    Capitalize On Collars To Enhance Your Trades

    Trade collaring measures current technicals and makes swift adjustments to account for environmental changes.
  3. Forex Education

    5. Protective Collar

    If you want to trade options but are short on strategies, we can help.
  4. Options & Futures

    Apple As An Example Of How a Protective Collar Works

    We define a protective collar, using Apple (AAPL) as an example. A protective collar is a combination of a covered call plus long put position.
  5. Options & Futures

    Costless Collars: Because Asset Allocation Is Not Enough

    Collars are extremely flexible, and can be much more beneficial to your portfolio than asset allocation.
  6. Options & Futures

    Market Volatility Strategy: Collars

    Find out which protective or bullish collar will result in your optimal risk/return level.
  7. Economics

    What is the American Dream in 2016?

    The American Dream is still alive and well, but it looks very different than it used to.
  8. Investing Basics

    How Does a Collar Work?

    Collar refers to a protective options strategy that investors use after a stock has experienced substantial gains.
  9. Options & Futures

    Using LEAPS With Collars

    This options strategy will help you lock in profit while keeping your upside potential.
  10. Fundamental Analysis

    Diversifying A Concentrated Stock Position

    Having stocks in one area exposes an investor to risk. We tell you four ways to minimize it.
RELATED FAQS
  1. What are the best options strategies for investing in the real estate sector?

    Discover two popular options strategies that traders often use to enhance or protect profits when investing in the real estate ... Read Answer >>
  2. How is a short call used in a collar option strategy?

    Learn how a short call is used in a collar option strategy, and see how this strategy has a limited risk and a limited return ... Read Answer >>
  3. How did the Great Recession affect structural unemployment?

    Understand the events in America that led to the Great Recession. Learn about structural unemployment and how it was affected ... Read Answer >>
  4. Should I care about the book value per common share when dealing with a blue chip ...

    See why shareholders of any listed company, even owners of blue chip stock, should care about what the book value per common ... Read Answer >>
  5. How does the Bureau of Labor Statistics define contingent workers?

    Discover how contingent workers are a significant part of the labor force and are defined as persons who do not expect their ... Read Answer >>
  6. In what ways can a portfolio be over-diversified?

    Learn how it is possible to over-diversify an investment portfolio, and find out what role opportunity cost plays in financial ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center